RTEK.
Friday March 31, 4:38 pm Eastern Time
Company Press Release
Rubber Technology International Inc. Rejects Hostile Takeover Proposal
LOS ANGELES--(BUSINESS WIRE)--March 31, 2000--Rubber Technology International Inc. (OTCBB:RTEK - news) today
announced that its board of directors had summarily rejected a proposal by Senior Care Industries Inc. (OTCBB:SENR - news)
to acquire 80% of RTI stock for $4 million in SENR stock and a purported $800,000 cash infusion.
In exercising its fiduciary duties to shareholders, the board noted that the SENR stock proposed to be offered has extremely
limited trading and volume, which the board believes reflects an actual value substantially below the purported market price for the SENR stock. The board noted that SENR
stock is unlikely to maintain its present market value without substantial support and additional investor interest.
The board determined that the proposed offer of shares of SENR would be uneconomic to RTEK shareholders when the RTEK stock is trading with significant liquidity.
The board also noted that the proposal failed to consider RTEK's recent acquisition of reporting status and its improvement in stock price, as well as capital infusions in
support of its plans which exceed $800,000.
The board noted that the proposal only involved an immediate infusion of $200,000 in cash, which is substantially below what the board is seeking to further undertake its
business plan. The board consequently rejected the proposal.
Rubber Technology International is a leader in the tire recycling industry. The Los Angeles-based company is paid to receive scrap tires that are then ground into crumb
rubber, which is in ever-increasing demand for molded goods, topping for horse arenas, safety material for playgrounds and as an ingredient in rubberized asphalt.
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties
including, without limitation, continued acceptance of the company's products, legislative and marketplace changes, and governmental regulations affecting the company's
operations.
Contact:
Rubber Technology International Inc., Los Angeles
Patrick Rost, 760/942-0015 (investors)
E-mail: pmrandco@aol.com
Internet: www.RubberTechnology.com |
